GST & Insurance

The Malaysian Insurance Institute (MII) is not expecting a decrease in insurance penetration rate next year despite the implementation of the Goods and Services Tax (GST).

“The growth of life insurance has always been slightly higher than the country’s gross domestic product and the trend is expected to continue in that vein. The growth of the industry has always been in tandem with the growth of the country’s economy. As long as we are growing economically, the insurance market will also grow.”

He said the life insurance industry, which is targeting to achieve 80 per cent penetration rate by 2020 from 54 per cent last year, would be able to achieve its target despite challenges.

 

The challenges for the industry, besides the lack of talent, are to align the products to the market. The Malaysian market is not short of portfolio offerings but is lacking in distribution channels and market awareness.